Share NAV is very impreive around 20. But last quaret EPS is rs 4/= is consist of big amount of non normal transaction. Now they are calling for a right issue at 8. But still share price is less than 8. Soo dear experties please explain what will be the impact to share. Beacuse im very new to hear as well as studing CSE.

Cost for the transaction was 2.3Bn.Now RIL have to go for a mandatory offer to buy remaining shares of UML.As said in the particular announcement RIL targeting 51% of UML.Cost will be 3.91Bn for 51% stake.

RIL has 6Bn retain earnings, they can utilize that fund for the transaction.

Or they have to go for a loan or right issue to get the fund.Currently RIL has low DER.But they are currently paying nearly 30% as finance cost of Gross profit.If they go for a big loan there bottom line would badly get a hit.

On positive side RIL gets good valuable lands from UML which they can develop as stated in the announcement.

Cost for the transaction was 2.3Bn.Now RIL have to go for a mandatory offer to buy remaining shares of UML.As said in the particular announcement RIL targeting 51% of UML.Cost will be 3.91Bn for 51% stake.

RIL has 6Bn retain earnings, they can utilize that fund for the transaction.

Or they have to go for a loan or right issue to get the fund.Currently RIL has low DER.But they are currently paying nearly 30% as finance cost of Gross profit.If they go for a big loan there bottom line would badly get a hit.

On positive side RIL gets good valuable lands from UML which they can develop as stated in the announcement.

RIL will be a good interesting share in coming quarters.

My assumption of a right issue is right then.

Yes correct.

Still they have retained earnings more than Rs8.0bn in their books as well.

Over 75% of the company shares are with Yaseen family. So they are willing to invest over I billion to keep their share percentages intact. I think expecting something similar to SHL SP movement is not unreasonable

RIL was announced it's IPO @Rs8.0/share last year & it's fairly valued IPO.

Later they acquired 51% of UML & add value to the RIL. At company level they are performing really well and the profits are on increasing trend.

As YB mentioned the ownership of the company is mainly with yaseen family & their holding is almost 80% of the issued share capital.

Major share holder of UML Mr.M.A. Yaseen has sold part of his stake in UML together with other minority share holders to RIL at a very attractive price of Rs78./Even the independent advisers has mentioned that the Rs78/ offer price is not attractive.

Even though they have retained earning to the value of Rs8.0bn now still they have decided to go for a RI at the IPO price(Not at ARTIFICIALLY elevated price like SHL) of Rs8.0. If they are smart they should have done this at a higher price level.

80% of the ownership of the RIL is with yaseen family & they will not dilute their holding in RIL at this stage since they wanted to keep the UML also under their radar & will go for it for sure.

So this is a fair & a good RI issue for me & not like SHL RI.

We all know how SHL has done their IPO at a highly over priced price of Rs29. In secondary mkt SHL never reached the IPO price & the highest reported price still in the board reflected as Rs28. After that we know what has happened to SHL & share price which came down to low as Rs8.0 levels.

However now they have announced a private placement of shares & a RI @Rs17 once again & given a bait to all of us by artificially increasing(my view) the share price above Rs20 levels. The company which the 19% private placement is going to happen in SHL is registered in Mauritius.(We know how genuine the companies registered in this Island..... )

RIL was announced it's IPO @Rs8.0/share last year & it's fairly valued IPO.

Later they acquired 51% of UML & add value to the RIL. At company level they are performing really well and the profits are on increasing trend.

As YB mentioned the ownership of the company is mainly with yaseen family & their holding is almost 80% of the issued share capital.

Major share holder of UML Mr.M.A. Yaseen has sold part of his stake in UML together with other minority share holders to RIL at a very attractive price of Rs78./Even the independent advisers has mentioned that the Rs78/ offer price is not attractive.

Even though they have retained earning to the value of Rs8.0bn now still they have decided to go for a RI at the IPO price(Not at ARTIFICIALLY elevated price like SHL) of Rs8.0. If they are smart they should have done this at a higher price level.

80% of the ownership of the RIL is with yaseen family & they will not dilute their holding in RIL at this stage since they wanted to keep the UML also under their radar & will go for it for sure.

So this is a fair & a good RI issue for me & not like SHL RI.

We all know how SHL has done their IPO at a highly over priced price of Rs29. In secondary mkt SHL never reached the IPO price & the highest reported price still in the board reflected as Rs28. After that we know what has happened to SHL & share price which came down to low as Rs8.0 levels.

However now they have announced a private placement of shares & a RI @Rs17 once again & given a bait to all of us by artificially increasing(my view) the share price above Rs20 levels. The company which the 19% private placement is going to happen in SHL is registered in Mauritius.(We know how genuine the companies registered in this Island..... )